Burkina Faso's Economy Grows to 4.9% in 2024 Amid Reforms, Energy Challenges

Real per capita GDP growth surged from 0.7% in 2023 to 2.5% in 2024, offering meaningful improvement in average living standards.

Burkina Faso’s economy witnessed a significant rebound in 2024, with real GDP growth accelerating to 4.9%, up from 3.0% in 2023, according to the World Bank’s April 2025 Burkina Faso Economic Update. This expansion, the strongest in recent years, reflects a remarkable improvement in agricultural and service sector performance, driven by favorable weather, better security conditions, and increased government investment, particularly in rural development and food production.

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Key Drivers of Growth: Agriculture and Services

Real per capita GDP growth surged from 0.7% in 2023 to 2.5% in 2024, offering meaningful improvement in average living standards. The turnaround is largely attributed to:

• Revitalized agriculture, supported by targeted subsidies, favorable rainfall patterns, and pest control measures.

• A dynamic services sector, including trade, transport, and telecommunications, which benefited from improved internal stability and investment.

This combination contributed to a 3-point drop in the extreme poverty rate, which now stands at 23.2%, marking significant gains, particularly in rural communities. However, despite these gains, over 5.5 million people in Burkina Faso continue to live below the poverty line, indicating the need for sustained pro-poor growth policies.

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Inflation and Food Prices Surge Amid Market Uncertainty

While growth trends are encouraging, inflation rose sharply in 2024 to 4.2%, compared to 0.7% in 2023. This was primarily due to a spike in food prices, caused by market speculation linked to a delayed rainy season. Volatility in domestic food markets poses an ongoing threat to food security and household resilience, especially among vulnerable groups.

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Fiscal and External Deficits Narrow, But Financing Pressures Persist

In macroeconomic terms, Burkina Faso made notable progress in reducing its fiscal and current account deficits, often referred to as the “twin deficits”:

• Fiscal deficit narrowed from 6.5% of GDP in 2023 to 5.6% in 2024, largely through improved revenue collection and better control over public expenditure.

• Current account deficit improved from 8.0% to 6.4% of GDP, mainly due to a surge in gold exports, benefiting from higher global prices.

Despite these gains, the financing of the current account deficit remained heavily reliant on regional bond markets, which are characterized by high interest rates, raising concerns about debt sustainability and the cost of future borrowing.

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Looking Ahead: Opportunities and Risks

The World Bank projects that growth will stabilize around 5% in the medium term, assuming progress in structural reforms and a continuation of favorable weather and security conditions. Key sectors expected to drive this growth include:

• Services: digital expansion, transport, logistics, and trade

• Industry: a potential revival, underpinned by improved electricity access and energy sector reform

• Agriculture: sustained by modern inputs and irrigation

However, the outlook remains clouded by significant risks, including:

• Persistent insecurity due to armed conflict and regional instability

• Climate shocks, including erratic rainfall and drought

• Weaknesses in the financial sector, including undercapitalization and exposure to sovereign debt

• Debt refinancing challenges, amid tightening regional and global monetary conditions

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Calls for Improved Resource Management

The report, authored by Daniel Pajank and Ibrahim Nana, emphasizes the importance of:

• Strengthening domestic revenue mobilization through tax reforms and digital tools

• Broadening the tax base, particularly in the informal sector

• Optimizing public spending through enhanced fiscal discipline and efficiency

• Improving debt management with a focus on concessional financing

These measures are essential to create fiscal space for investments in infrastructure, social protection, and economic transformation.

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Special Focus: Electricity Sector as Catalyst for Growth

The special chapter of the report, titled “Energy for Economic Growth,” provides a comprehensive analysis of Burkina Faso’s electricity sector, which is identified as a critical bottleneck to inclusive development.

Despite efforts made under the National Electrification Strategy, access to electricity remains among the lowest in the region, severely limiting productivity and quality of life—especially in rural and peri-urban areas.

“Affordable, reliable, and sustainable electricity is essential to improve productivity in agriculture, support the growth of services, and revive the industrial sector,” said Hamoud Abdel Wedoud Kamil, World Bank Country Manager for Burkina Faso.

The sector is hindered by:

• High generation costs, among the highest in West Africa

• Heavy dependence on imported fossil fuels

• Inadequate infrastructure for generation, transmission, and distribution

• Limited off-grid solutions for remote areas

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Recommendations for Power Sector Reform

The energy chapter, co-authored by Regina Nesiama Miller and Adwoa Asantewaa, outlines several recommendations:

1. Adopt cost-reflective tariffs, with targeted subsidies for vulnerable consumers

2. Scale up investments in renewable energy, particularly solar mini-grids and off-grid systems

3. Expand access to rural communities via decentralized models

4. Improve governance and transparency in utility operations

5. Encourage private sector participation through regulatory certainty and public-private partnerships

Such reforms are deemed crucial to unlock the full potential of industry, agro-processing, and digital infrastructure, all of which rely on dependable power supply.

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Turning Promise into Progress

Burkina Faso’s 2024 economic rebound offers a strong foundation for long-term transformation. Yet, to turn this momentum into sustained inclusive growth, the country must address structural constraints, particularly in energy, fiscal management, and social equity.

The World Bank’s Economic Update serves as both a scorecard and a strategic guide, encouraging policymakers to act with urgency and coordination.

“The journey ahead is complex, but Burkina Faso has demonstrated that with stability, sound policies, and investment in people and infrastructure, meaningful progress is possible,” the report concludes.